Israel's housing ministry said 800 houses will be built in the West Bank and 600 in east Jerusalem.

The statement had been expected after Israel released 26 long-serving Palestinian prisoners in late December, part of a deal made last summer when Israeli-Palestinian peace talks resumed. It was the third of four pledged prisoner releases.

A spokesman for Palestinian President Mahmoud Abbas, Nabil Abu Rdeneh, condemned the announcement, saying it undermines the “American efforts aimed at creating a peace track toward a two-state solution.”

The announcement was expected earlier this month but was postponed, apparently to avoid coinciding with last week's visit by U.S. Secretary of State John Kerry. While Israel is not obligated to halt construction under the peace talks, Kerry has urged restraint and said the building raises questions about Israel's commitment.

Prime Minister Benjamin Netanyahu previously issued similar construction announcements to blunt criticism he faces at home over the prisoner releases as many of the Palestinians freed were convicted of killing Israeli civilians and soldiers. Israelis widely resent the release of the prisoners, whom they view as terrorists.

“Releasing the prisoners was an immoral step that shouldn't have happened,” said Isaac Herzog, chief of the opposition Labor Party. “The housing ministry's announcement at the time of negotiations damages negotiations.”

Herzog said Netanyahu should have halted settlement construction rather than release the prisoners, and he blamed hard-liners in the prime minister's coalition for the move.

The announcement also drew criticism from within Netanyahu's coalition. Finance Minister Yair Lapid of the centrist Yesh Atid Party said his party objects to the announcement and “will do everything so they are not implemented.”

Ofir Akunis, a lawmaker from Netanyahu's Likud Party, defended the decision, saying the construction is Israel's “natural and historical right.”

State Department spokeswoman Jen Psaki said Friday, “We have called on both sides many, many times to create a positive atmosphere for negotiations.”

The Palestinians demand those areas, captured by Israel from Jordan in the 1967 Mideast war, for their state. They long had refused to negotiate with Israel while settlement construction continued.

Since the peace talks resumed last summer, Israel has issued 5,500 tenders for new housing in the West Bank and east Jerusalem, said Yariv Oppenheimer of the Israeli anti-settlement group Peace Now. Oppenheimer called it a significant increase compared to other years.